Over the last week, we have seen some truly remarkable moves in China-based companies that produce and manufacture electric vehicles. With flurries of analyst upgrades, solid delivery numbers, and lots of bullish sentiment about the potential of the Chinese EV industry, these supercharged stocks are showing investors that they are gaining traction. There’s a lot to like about these businesses, as China-based manufacturers currently account for over 50% of overall EV deliveries worldwide.
While Tesla (NASDAQ:TSLA) is the current leader in China’s rapidly growing EV market, 3 additional companies could also benefit in the coming years. We know that electric vehicles feature advantages like environmental tax credits, lower costs, less maintenance, and eco-friendliness, which is a big reason why investors are so excited about the growth prospects of companies in the sector. The rising demand for electric vehicles in one of the world’s largest economies could be the perfect recipe for investing success. Keep reading below to learn more about 3 supercharged Chinese EV stocks to watch next week.
The first stock on our list is the up-and-coming premium electric vehicle company NIO. The stock has been on an absolute tear and is up over 1000% year-to-date. While it’s fair to consider the monumental rise in share price as the product of speculation, the company has a lot of positives working in its favor. In October, the company delivered more than 5,000 EVs and marked the third consecutive month of record deliveries for the company. NIO has delivered 31,340 vehicles in 2020 thus far, which is a year-over-year increase of 111.4%.
These delivery numbers are important for two reasons – they confirm that NIO is executing at a high level from a production standpoint and that the demand for its electric vehicles remains strong even as the pandemic rages on. With that said, the stock is up over 22% over the past week and is likely due for a sharp pullback soon. If such a pullback occurs, investors that are intrigued by the growth prospects of NIO might find an attractive entry point.
Full story on MarketBeat.com